In a regulatory filing on the 19th, SK hynix announced that during its shareholder return policy period from 2025 to 2027, it plans to return at least 50% of its cumulative free cash flow (FCF) through a combination of share buybacks and cancellations, as well as dividends.
The company held a board of directors meeting that day to approve a resolution regarding the repurchase and cancellation of treasury stock and to disclose its shareholder return plan. The company explained that this move aims to enhance shareholder value through the cancellation of treasury stock, based on the assessment that the company’s intrinsic value—including business competitiveness, cash generation capacity, and mid- to long-term growth potential—is not fully reflected in the current stock price.
The total amount allocated for the repurchase of treasury stock is 40 trillion won. Based on the closing price of 1,662,000 won per share on the day before the board resolution, this amounts to 24.07 million shares. This represents approximately 3.3% of the total 730,492,365 issued shares. The repurchase period is scheduled to last approximately three months, beginning on the 20th, and all shares acquired will be canceled upon completion of the repurchase.
The company stated that this move represents the early implementation of its existing shareholder return policy. In November 2024, SK hynix announced that it would implement shareholder returns within 50% of its cumulative free cash flow (FCF) over a three-year period (2025–2027) and that, should FCF increase significantly due to improved performance, it would consider early returns even before the policy’s expiration.
This 40 trillion won repurchase represents the largest share buyback and cancellation by a South Korean-listed company to date. As the company is making steady progress toward achieving its financial soundness targets, it plans to continue returning value to shareholders while maintaining a stable financial structure.
Through this disclosure, SK hynix announced that it will expand the scope of shareholder returns from the previous “within 50% of cumulative FCF” to “50% or more.” The company also plans to combine the acquisition and cancellation of treasury stock with cash dividends, and is considering measures to expand dividends, including existing fixed dividends and special dividends.
The company emphasized, “We plan to pursue additional shareholder returns by combining the repurchase and cancellation of treasury stock with dividends, taking into account cash flow, market conditions, and distributable profits during the policy period.” Specific details regarding the scale and methods will be announced at the time of the third-quarter earnings release, following a resolution by the board of directors.
